“It’s a great victory for the community,” said Todd Cagnoni, director of community and economic development. “That structure’s been in disrepair for a number of years. We’ve been actively pursuing the enforcement of our codes, which resulted in significant liens against the property. It’s nice to get that down.”

The city had levied thousands of dollars worth of fines against the former property owner, who had lost the building in foreclosure. Robert W. Stenstrom, as a member of S&B Venture LLC, purchased the property Dec. 30 from Dearborn Street Holdings LLC and Bayview Loan Service, Winnebago County Recorder Nancy McPherson said.

As part of a development agreement with the city, Stenstrom agreed to raze the property in exchange for having the outstanding liens reduced. They also turned a portion of the property over to the city to provide room to expand the 11th-Harrison intersection.

“With that building coming down and the new construction, that is really going to create more traffic for that area,” Ald. Marcus Hill, D-6, said. “We’re hoping it will help bring new business there.”

There are no plans to develop the property.

The Pump Handle Inn was once the city’s version of the landmark Wagon Wheel Resort in Rockton. Rockford gas and oil entrepreneur Walt Williamson built and owned both properties, which began to slowly decline after his death in 1975. Several fires ruined the Wagon Wheel, so the rustic hotel was demolished in 2004.

The Pump Handle deteriorated into flophouse, about 60 people were living there when it was condemned in 2009, according to Register Star archives. Some of the tenants were elderly and disabled, and the motel had standing sewage in the basement, mold, faulty electrical wiring and termites.